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GENIUS Act (2025): the federal law for payment stablecoins
Signed July 18, 2025; in force by Jan 18, 2027· Law or rule
Fact, law or dataA rule, statute, definition or measured number.
The 2025 federal law setting rules for dollar stablecoins: who may issue them, what must back them, and who supervises.
See it on the Money & Finance map →How it works
The Guiding and Establishing National Innovation for U.S. Stablecoins Act passed the Senate 68–30 and the House 308–122, becoming law July 18, 2025. Only licensed issuers may sell 'payment stablecoins' to Americans. Tokens need 1:1 reserves in cash or short Treasuries, disclosed monthly; issuers may not pay interest. Tokens are neither securities nor FDIC-insured. Holders get first claim on reserves if an issuer fails. It takes effect January 18, 2027, or 120 days after final rules if sooner; regulators missed their July 2026 rule deadline.
Why it matters
It turned stablecoins from a legal gray zone into a regulated dollar product, invited banks and large companies in, and made issuers steady buyers of T-bills.
Facts, rules and data
The statute's text, Senate and House roll-call votes, the OCC's February 2026 proposed rule and Treasury's August 2026 proposal implementing it.
Debates and risks
Whether offshore issuers like Tether will comply for US users, and whether exchanges' 'rewards' on stablecoin balances undercut the no-interest rule.
Inside this (2)
Connections (4)
▸GENIUS Act (2025): the federal law for payment stablecoins created federal rules for Stablecoins: crypto tokens pegged to a currencyFact, law or data
The connection
Before the law, stablecoins fell under a patchwork of state money-transmitter licenses and New York trust charters, with SEC and CFTC claims disputed. The act defines a 'payment stablecoin', requires licensing, 1:1 reserves, monthly disclosure and redemption rights, bans interest to holders, and declares such tokens neither securities nor commodities.
When and why
Congress, June–July 2025; signed July 18, 2025; effective by January 18, 2027 at the latest.
How we know
The statute's text and the agencies' 2026 proposed implementing rules.
Debates and risks
Whether 'rewards' paid by exchanges rather than issuers will undercut the interest ban; Congress is still fighting over it.
▸GENIUS Act (2025): the federal law for payment stablecoins gives new licensing power to Office of the Comptroller of the Currency (OCC)Fact, law or data
The connection
The act makes the OCC, long the national-bank regulator, the federal licensing and supervisory agency for nonbank stablecoin issuers and registered foreign issuers. It can examine them, set capital and liquidity rules, and revoke licenses. The OCC proposed its main rule in February 2026 and aims to finalize it by November.
When and why
Washington; the OCC under Comptroller Jonathan Gould proposed a 376-page rule on February 25, 2026.
How we know
The GENIUS Act's text and the OCC's proposed rule, published in the Federal Register on March 2, 2026.
Debates and risks
Whether the OCC has the staff and expertise to supervise crypto firms well, and how strict its final capital floors will be.
▸GENIUS Act (2025): the federal law for payment stablecoins brings stablecoin issuers under Bank Secrecy Act and anti-money-laundering rulesFact, law or data
The connection
The act treats stablecoin issuers as financial institutions under the Bank Secrecy Act. They must verify customers, monitor transactions, file suspicious-activity reports and obey sanctions. They must also be technically able to freeze, seize or burn tokens on lawful orders, and foreign issuers that refuse US orders can be shut out of US platforms.
When and why
Written into the 2025 act; Treasury and FinCEN are drafting the detailed anti-money-laundering rules separately.
How we know
The statute's text; the OCC's February 2026 proposal expressly left Bank Secrecy Act and sanctions rules to a separate Treasury rulemaking.
Debates and risks
How issuers can police tokens once they move into anonymous self-hosted wallets, outside any regulated firm.
▸Who may issue payment stablecoins, and who supervises them are defined by GENIUS Act (2025): the federal law for payment stablecoinsFact, law or data
The connection
The act limits issuance to three kinds of permitted issuers, bank subsidiaries, OCC-licensed nonbanks and qualified state issuers, and names each one's supervisor. Anyone else who issues a payment stablecoin to US users faces penalties, and from July 2028 US platforms may not offer non-permitted tokens.
When and why
The GENIUS Act of July 2025, with licensing to begin once it takes effect, by January 2027.
How we know
The statute's text and the OCC, FDIC and NCUA proposed rules on applications.
Debates and risks
How regulators will treat firms already operating, and how long licensing will take in practice.